Project Expected Monetary Analysis

Project Expected Monetary Value Analysis.

Expected Monetary value analysis is a risk analysis tool in project management

Example 

Expected Monetary Valuation (EMV) is calculated as  P*I

P stands for Probability

I stand for Impact

Risk 1 : Probability =50%                                   P

Impact =$30,000                                   I

                 EMV1 = P*I =.50*$30,000=$15,000

Risk 2:  Probability = 70%

Impact = %50,000

EMV2= P*I = .70*$50,000=$35,000

Risk 3 : Probability= 40%

Impact=$70,000

EMV3= P*I = .40*$70,000=$28,000

Risk 4: Probability=60%

Impact=$40,000

EMV4= P*I = .60*$40,000=$24,000

Expected total impact= EMV1+ EMV2+ EMV3+ EMV4

=$15,000+$35,000+$28,000+$24,000= $102,000